Page 81 - RusRPTApr20

the sale of the controlling stake in country’s largest bank Sberbank from June 1 to December 1 2020, due to increased market volatility caused by the spread of the Coronavirus, Reuters reported on March 2 citing the Deputy Head of the CBR Xenia Yudaeva. As reported by bne IntelliNews, the Finance Ministry intends to buy out the controlling stake in Sberbank from the CBR at market value of over RUB2.5 trillion using the excess cash from the National Welfare Fund (NWF). But Sberbank’s shares lost 10.5% in Moscow since the deal was announced on February 11. Unnamed sources told Vedomosti that the CBR seeks for more flexibility with the deal to avoid sharp drops in value of the transferred stake. Russia’s largest bank, state-controlled Sberbank, reported net profits of RUB80bn ($1.25bn) in January under Russian Accounting Standards (RAS) for January 2020, up by 9% year on year and 43% month-on-month.
8.1.8 Bank news
Court hearings for Oleg Tinkov, the founder and main shareholder of the TCS Group, will take place in London in February-April 2020 after the billionaire posted GBP20mn as bail. Tinkov is charged with underreporting his income at the time when he gave up his US passport and the US Internal Revenue Service initiated the case as those that give up their citizenship have to pay an “exit tax” based on the net worth at the time, the bank announced. As reported by bne IntelliNews, TCS operates Russia’s only pure online bank Tinkoff and its capitalisation top $5bn in London last month. The bank’s investment case is seen as solid, as it has transformed from credit card monoliner into an ecosystem of financial and lifestyle services. Tinkov has a 40% economic stake in TCS and is reportedly under scrutiny for potential tax issues, including false tax returns and under-reporting Tinkov’s 2013 income, when he gave up his passport. Reportedly Tinkov paid GBP20mn in bail to avoid arrest and is fighting extradition to the US and also faces an airport ban. “The lack of details on the potential tax issues provides a wide range of outcomes, including the potential forced sale of Tinkov’s shares,” BCS Global Markets commented on March 2, seeing this scenario, however, as only a minor negative. TCS main shareholder is under scrutiny after the group most recently announced investing in the fintech project launched in Europe by two of its managers, the first international expansion of TCS, potentially competing with such fintech providers as Monzo, Revolut and N26.
Russia's second biggest lender VTB plans to provide a three-month grace period on loans to the people who suffered, including financially, by the coronavirus epidemic, the bank said in a statement on Monday. "Among such measures is the postponement of repayment of the loan products (both core debt and interest) for the clients who had to take sick leaves or bore financial losses due to the quarantine or unpaid holidays amid the outbreak of coronavirus. The grace period can be provided for up to three months," the bank said.
Fitch Ratings sees no immediate impact on Tinkoff Bank's BB/Stable ratings from the US indictment against Oleg Tinkov, the bank's founder and the owner of a 40% stake, or from Tinkov's recent announcement that he is receiving treatment for leukaemia, the agency said on March 12. As reported by bne IntelliNews, the TCS Group, which operates Russia's only pure online bank Tinkoff, has recently lost over 20% of its value on the news. TCS posted solid results for 4Q19, reiterated dividends, and announced a buyback of its shares in London. Fitch sees limited risks to the bank's management, funding
81 RUSSIA Country Report April 2020 www.intellinews.com